In the case of Union of India v. Sir Sobha Singh and Sons Pvt. Ltd. (2026), the Supreme Court of India set aside a High Court judgment and ruled that the occupation of residential premises by the Government under a perpetual lease deed is governed by the Government Grants Act (GG Act), thereby excluding the jurisdiction of the Delhi Rent Control Act (DRC Act).
Case Background
The dispute originated from a perpetual lease deed executed on April 26, 1945, by the Governor General in Council in favor of the respondent’s predecessor for land at Sujan Singh Park, New Delhi. Under the terms of the grant, the lessee constructed residential blocks, and the Government reserved the right (under Clause 6) to have up to 50% of the flats leased to its officials at a “fair rent”.
Over time, the Union of India occupied numerous flats, servant quarters, and garages for housing officials. In 1991, alleging a default in rent payments between 1989 and 1991, the respondent initiated eviction proceedings under Section 14(1)(a) of the DRC Act.
Procedural History
- Rent Control Authorities: Both the Additional Rent Controller (ARC) and the Rent Control Tribunal (RCT) proceeded on the assumption of a conventional landlord-tenant relationship and ordered the Union of India’s eviction due to non-compliance with rent deposit orders.
- High Court: Affirmed the eviction, ruling that the GG Act did not create immunity from rent control legislation and that the payment of rent attracted the provisions of the DRC Act.
Key Findings of the Supreme Court
The Supreme Court reversed these findings, focusing on the specialized legal character of Government grants:
- Primacy of the Government Grants Act: The Court emphasized that since the perpetual lease deed emanates from a Government grant, it is governed by Sections 2 and 3 of the GG Act. These sections mandate that such grants “take effect according to their tenor” notwithstanding any other statute, rule of law, or enactment to the contrary.
- Inapplicability of the DRC Act: The Court held that Section 3 of the GG Act confers a “special statutory immunity” that elevates the stipulations of the grant to a position of supremacy. Therefore, the DRC Act—which regulates conventional tenancies—cannot be superimposed onto a relationship originating in and regulated by a Government grant.
- Lack of Eviction Provisions in the Grant: The Court noted that the grant itself contained no express stipulation for eviction based on the non-payment of rent. In the absence of such a clause, the right to evict cannot be inferred, and the respondent’s remedy is confined strictly to the recovery of rent in accordance with the law.
- Jurisdictional Error: The Court concluded that because the DRC Act did not apply, the Rent Controller lacked the jurisdiction to entertain the eviction suit, rendering the entire proceeding vitiated from its inception.
Conclusion
The Supreme Court allowed the appeal and set aside the High Court’s judgment . While the eviction orders were quashed, the Court clarified that the respondent remains free to pursue appropriate civil remedies for the recovery of any outstanding rent.
2026 INSC 406
Union of India V. Sir Sobha Singh And Sons Pvt. Ltd. (D.O.J. 22.04.2026)




